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Procore Technologies, Inc. helps construction owners, general contractors and specialty contractors manage project information and coordinate work. Its platform connects activities from estimating and bidding through on-site execution and project finances, giving employees and project partners a shared place to work.
These businesses pay fixed subscription fees, generally under annual or multi-year contracts. Fees mainly reflect the products selected and the dollar value of construction work customers commit to manage on the platform, rather than a charge for each project or actual usage. Most subscriptions allow unlimited users, so invited collaborators do not pay Procore; some owners instead buy per-user access.
Enterprise and mid-market customers account for the vast majority of recurring subscription business. Revenue depends on winning and retaining customers and persuading them to add products or commit more construction volume; lower construction volume can reduce what customers pay. Its Procore Pay payment feature also has a regulatory boundary: it processes payments through Procore Payment Services where that subsidiary is licensed as a money transmitter and relies on payment partners elsewhere.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Autodesk competes with Procore for contractors’ spending on construction-management and preconstruction software subscriptions. Watch Autodesk Build and BuildingConnected for signs of competition for those budgets, rather than Autodesk’s broader design-software business.
Trimble competes with Procore for general and specialty contractors’ software budgets, selling construction-management, estimating and contractor accounting software. Its offerings in those areas are the relevant competition for Procore.
Bentley Systems, Incorporated and Procore both depend on infrastructure project activity and customers moving work into digital tools: Bentley sells engineering and collaboration software to infrastructure enterprises and professionals, while Procore sells construction-execution subscriptions to owners and contractors. Bentley’s Public Works/Utilities customer demand is worth watching for the infrastructure spending backdrop, though Procore also serves residential construction.
Oracle’s Primavera and Aconex compete with Procore for construction customers’ spending on scheduling, project controls and collaboration software. These products are only a small part of Oracle, so their news is more relevant to Procore than Oracle’s overall results.
Housing Starts (Sep)
Procore’s subscriptions for construction-management software are generally priced around customers’ annual construction volume, so new-home construction activity can affect how much residential customers pay.
Expected1.31MLast release1.275M
If it comes in above expectations
If the reading is above the 1.31M estimate, it is above the previous 1.275M. More homes started or permitted, or stronger new-home sales, can mean more work for residential construction customers and support their construction volume and subscription spending with Procore.
If it comes in below expectations
Fewer homes started or permitted, or weaker new-home sales, can mean less work for residential construction customers and reduce their construction volume and subscription spending with Procore.
Procore Technologies, Inc. earningsThis company
Procore charges subscriptions based on customers’ contracted construction volume and chosen products, so this report will show whether existing customers renew and expand enough to keep subscription revenue growing.
Read revenue growth alongside net revenue retention (NRR, the change in subscription revenue from existing customers after expansions and losses) and the number of customers with more than $100,000 in annual recurring revenue (ARR). If NRR and that large-customer count both strengthen, existing customers are renewing and adding construction volume or products; if they weaken, revenue may still reflect subscriptions signed earlier while the base of customer expansion narrows.
Trimble Inc. earningsTRMB
Trimble competes with Procore for general and specialty contractors’ software budgets, and its report will show whether spending on the relevant construction software is holding up.
Focus on Trimble’s construction-software results and compare their direction with Procore’s subscription growth and large-customer retention, rather than comparing the companies’ total results. If Trimble’s relevant business holds up while Procore’s large-customer measures weaken, competing products may be winning budget that is not translating into Procore expansion; if Trimble weakens while Procore holds steady, Procore is retaining customers better; if both weaken, contractors may be tightening software budgets.
Bentley Systems, Incorporated earningsBSY
Bentley Systems sells engineering software to infrastructure enterprises and professionals, so its report offers a signal on infrastructure-project demand that matters to some of Procore’s owners and contractors.
Watch for demand signals from Bentley Systems’ Public Works and Utilities customers, not as a stand-in for Procore’s results. Stronger demand would make the infrastructure-project backdrop more supportive for the owners and contractors Procore serves; weaker demand would mean less support from that part of the market. Procore also serves residential construction, so this is only one slice of its demand picture, not a verdict on overall subscriptions.
